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Check my work Labor spending variance Labor efficiency variance $ 3,200 U $ 900 U Required: 1. For direct materials: a. CompuCheck my wor Labor spending variance Labor efficiency variance $ 3,200 u $ 900 u 25 points Required: 1. For direct materials:Labor spending variance Labor efficiency variance $ 3,200 U $ 900 U 25 Required: 1. For direct materials: a. Compute the actuSharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours 3 feet 7 hou

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Answer #1
Part-1
1
a. Material Quantity Variance= ( SQ- AQ ) X SP
((3000X3)-AQ)X5=-2550
9000-AQ=-510
AQ=9510
b. Material Price variance = ( SP-AP) X AQ
($5- $5.5)X 9510=$4755 Unfavourable
Actual price= 52305/9510=$5.5
Part-2
a. Std Direct Labour Rate per Hour
Labour Spending Variance= ( SR- AR)X Actual Hour
(SR-$9.5)X 4600= -3200
SR=$8.80
AR=43700/4600=9.5 / Hour
b. Std Hour Allowed
Labour Efficiency Variance= ( Std Hour Allowed- Actual Hour) SR
-900=(Std Hour Allowed-4600)X $8.80
4498Hour
c. Std Haour Allowed per Unit od Product= Std Hour Allowed/ Actual Unit Produced
4498 Hour/ 3000=1.5 Hour
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